PROPERTY:

Wendy St, Clinton, MD 20735

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $223,000 and the property only needs about $15k in minor upgrades.  The borrower purchased several properties from the same seller (bank) and go a very good deal on it.   We will hold all construction funds in escrow and will reimburse for completed work.  The borrower will be bringing about $20K to closing.

PROPOSED TERMS:

Exit Strategy:Resell property

Loan Type: Purchase
Loan Amount: $240,000 1st Mortgage
Value of Subject Property: $400,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Credit Score 664

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property at a low LTV.  The Borrower is strong with experience and assets.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.